House prices: Buyer demand back at pre-Brexit level

27/10/2016

Estate agents record 16 per cent rise in September, but London continues to struggle after vote to leave EU.

 

House buyer demand across the UK rose in September, according to a new survey being seen as further evidence of a recovery in the housing market from its post-Brexit vote slump.

 

The latest monthly poll from the National Association of Estate Agents recorded a 16 per cent rise from August, taking demand back to levels last seen before the EU referendum in June, says the Daily Express.

 

The number of prospective buyers per estate-agent branch also rose, from 287 the previous month to 333.

 

"At the same time, the number of sales agreed increased by 12.5 per cent… to an average of nine per branch," adds the Express. Supply of houses for sale dipped from 41 per branch to 40.

 

This has positive implications for house prices, which some predicted would nosedive in the wake of the Leave victory. A shortage of supply is being cited as underpinning higher prices, despite the economic uncertainty.

 

This is not the first survey to show the sharp dip in demand and transactions yielding to a strong rebound.

 

However, despite the nationwide improvement, there has been consistent evidence of a regional disparity, with London's former powerhouse market struggling with longstanding affordability concerns and other areas doing far better.

 

Estate agents Haart today reported the number of transactions in the capital collapsed from 60,000 to 30,000 between June and August and fell a further 7.4 per cent last month.

 

"However, Haart's data delivers a more promising picture for the nation… with branches 100 miles from the city reporting 75 per cent increases in activity," saysThe Wharf.

 

Paul Smith, the chief executive of Haart, told City AM: "This could be a historic realignment of our property market away from central London, or a purely post-Brexit 'flash in the pan' phenomenon. 

 

"What is clear is that since June, Britain's property market has been turned on its head and London, for a change, is beginning to rely on the rest of the country for life-support." 

 

Reference: http://www.theweek.co.uk/house-prices/61987/house-prices-buyer-demand-back-at-pre-brexit-level

 

Image: http://www.theweek.co.uk/house-prices/61987/house-prices-buyer-demand-back-at-pre-brexit-level


 


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